Strategy: The SET decreased at a higher rate, while there was no fresh catalyst to provide support. Given that, we expect the index to continue to fall, which will serve as opportunity to buy. In this regard, we recommend that investors slowly accumulate on weakness because the SET has sharply increased lately and is likely to retreat for a while prior to a turnaround to rally. After which, we suggest that investorshold, waiting to sell into strength.
Technical stocks: DEMCO, WICE, TU(buy back)
Market direction: Last Friday (April 22), the SET tumbled after it increased continuously the past week or so. Meanwhile, there was no fresh catalyst to provide support. Given that, investors sold to lock in profit and to reduce risk. Earlier, the SET was supported by a recovery in global crude price. However, crude began to be volatile and retreat late last week. Although the loss was not large, it pressured energy shares considerably. What's more, domestic banks' earnings results were also weaker than expected. This morning, the SET continues to be pressured after regional equity markets opened lower. Such loss follows a decrease in most European stock markets late last week. Although Wall Street ended higher thanks to a recovery in crude oil price, the gain was small, pressured by poor U.S. corporate earnings from Microsoft and Caterpillar. For this reason, FSS expects the SET to continue to move downward and maintains our call that investors slowly accumulate on weakness. After which, we suggest that investors hold, waiting for a new round of rebounds.
Support 1408-1402, 1398-1392
Resistance 1415-1420 , 1424-1426
Source: fnsyrus.com / settrade.com
